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Japanese crypto exchange DMM Bitcoin suffers $305 million loss in hack

DMM Bitcoin announced that they will fully reimburse the stolen amount. All spot purchases are temporarily suspended, and customers withdrawing yen might experience some delays

Shashank Bhardwaj
Published: Jun 3, 2024 04:18:27 PM IST
Updated: Jun 3, 2024 04:22:28 PM IST

Japanese crypto exchange DMM Bitcoin suffers 5 million loss in hackImage: Rob Dobi/Getty Images

Today, DMM Bitcoin, one of Japan's largest crypto exchanges, reported a significant security breach. The incident, which occurred around 1:26 p.m., led to the theft of 4,502.9 BTC, with an estimated value exceeding $300 million. The breach involved unauthorised access to the exchange's wallet, highlighting significant vulnerabilities in its security infrastructure.

In an official statement, DMM Bitcoin announced they have implemented measures to prevent further unauthorised access. To enhance security, they have temporarily suspended new account openings, crypto asset withdrawals, and the acceptance of new buying orders for spot trading.

The exchange has temporarily restricted all spot purchases on the platform and noted that withdrawals in Japanese yen "may take more time than usual." In response to the hacking incident, Japan's Financial Services Agency has mandated the company investigate the breach and take measures to safeguard customers from potential damages. Additionally, the police have commenced their own investigation into the matter.

DMM Bitcoin has assured its customers that their Bitcoin deposits are fully guaranteed. In their announcement, they stated, "Please be assured that all your Bitcoin (BTC) deposits will be completely covered. We will procure the equivalent amount of BTC that was compromised with the support of our group companies."

The exchange has expressed sincere apologies to its customers for any inconvenience caused, stating, "We deeply apologise for any inconvenience caused to our customers." DMM Bitcoin is currently conducting a thorough investigation into the details of the breach and has committed to providing updates as more data becomes available.

Despite increasing popularity, crypto assets have been marred by scandals and sudden price crashes. In 2014, thieves stole 850,000 bitcoins from the Japanese exchange Mt. Gox, amounting to about $470 million at that time. Similarly, in 2018, another Japanese exchange, Coincheck, experienced a significant hack, resulting in the loss of nearly $500 million. These incidents highlight the ongoing security challenges within the crypto industry.

According to DeFi, a web3 security firm specialising in tracking crypto thefts and scams, hackers made off with approximately $2 billion in crypto through various cyberattacks and thefts last year. Although this figure represents a substantial loss, it is noteworthy that it is the lowest annual total since 2020.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist.
Twitter: @bhardwajshash